Tesco Ireland's revenues rose by 8 per cent to €1.29 billion in the six months until the end of August, according to figures provided by the supermarket giant to stock market analysts.

This compared with sales growth of 11 per cent in the same six-month period of 2006, when its revenues here totalled €1.19 billion. The slowdown in the pace of revenue growth partly reflects the timing of store openings this year.

The pace of sales growth from new stores declined to 3 per cent in the first half of the current financial year from 5 per cent a year earlier.

In its interim results, Tesco said the Irish operation "saw improved profits and another year of strong sales growth in existing stores".

No profit figure was published for the Irish operation but the British retailer said its profit growth here would have been "more rapid" but for the commissioning costs of a new 740,000 sq ft distribution centre at Donabate in north Dublin, which opened earlier this year at a cost of about €50 million.

"These costs will not recur in the second half [of the financial year]," Tesco added.

Tesco publishes sales data for Ireland on an annual basis. It does, however, include half-year turnover data for the Irish operation in an analysis of its global sales for stock market analysts.

Tesco is Ireland's biggest grocery retailer with a market share of more than 25 per cent. It reported sales in the year to the end of February 2007 of €2.7 billion.

Tesco opened a large hypermarket in the first half of its financial year but more store openings are planned before its year end at February 28th.

A new outlet opened in Celbridge, Co Kildare, last month. Tesco is also planning to add shops in Abbeyfeale and Coonagh Cross in Limerick; Castlepollard in Westmeath; Claremorris and Westport in Mayo and Kilrush in Clare.

In addition, Tesco opened a petrol station in Clonmel last week and is planning a forecourt operation for its Claremorris store.

Tesco operates 96 shops and 10 filling stations here.

The company is estimated to have a 5 per cent share of the petrol market.

Tesco said it was on target to launch its per-paid mobile phone service by the end of 2007 as part of a joint venture with O2. The company is thought to be planning a launch for the Christmas market.

Tesco has also recently hosted roadshows in Galway and Cork for prospective small suppliers of goods in a bid to expand its base of suppliers in Ireland. It is understood that more than 70 suppliers - who include makers of fresh baked goods and meat products - attended the meetings.

In terms of sales, Ireland is the second biggest revenue generator in Tesco's international division, behind South Korea. It is the biggest sales earner in Europe after the UK.

At a group level, Tesco reported an 18 per cent rise in pretax profits to £1.3 billion. Group sales, excluding petrol, rose by 9.1 per cent to £22.6 billion, excluding VAT.

In the UK, Tesco's sales rose by 5.4 per cent, including a like-for-like increase of 2.7 per cent.

Sales growth has slowed for Tesco in the UK, hampered by bad weather, rising interest rates and "recovering competitors".

Tesco, which is headed by Sir Terry Leahy, is planning to launch in the United States in November. The company said preparations for Fresh & Easy in California have "gone well".

Tesco said the start-up costs of its US operations would be €65 million in the current financial year, while the retailer plans to commit £250 million of capital a year.